Page 5 - M1_Insurance Introduction Notes

England, in which people donated amounts of money to

a general sum that could be used for emergencies.

Friendly or benevolent societies, also called

fraternal organisations, have a long tradition in many

European countries. Before modern insurance such

organisations would provide insurance, often for

people with a similar working background. Members of

fire societies were obliged to help each other to secure

goods from burning houses of fellow members. The

societies had their own fire-fighting equipment. Some

of them gradually started collecting money for those

affected by a fire and eventually turned into mutual

fire insurance companies.

During the Middle Ages, many countries allowed

begging for those who had lost their house and goods

after a fire.

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